The recent Association of Convenience Stores (ACS) conference in Birmingham brought to light a few interesting takeaways for retailers in the UK. As the country continues to grapple with slow economic growth, consumers are becoming more frugal with their spending and are turning to own-label products to stretch their budgets. Lisa Hooker, leader of industry for consumer markets at business consultancy firm PWC, noted this trend and predicted that it isn’t going away anytime soon.
Interestingly, the demand for own-label products is not limited to budget-conscious consumers. Guy Swindell, joint managing director at Parfetts, noted that retailers are increasingly stocking their shelves with own-brand goods as they offer a better margin than national brands and represent a differentiated offering that can help them stand out from the competition. However, retailers must be mindful of providing value for their customers while still maintaining margins.
The speakers at the conference also stressed the importance of investing in new technologies to remain future-proof. Peter Batt, managing director at Nisa, highlighted the need for retailers to make longer-term strategic decisions and invest in technologies that can benefit both their customers and their staff. Sarah Lawler, managing director of One Stop, advised retailers to pick their tech partners carefully and make technology an integral part of their business mix.
Nevertheless, while technology is important, retailers must not forget the importance of great retail basics. Natalie Berg, a retail analyst and author, warned against the over-reliance on technology and emphasized the need for a balanced approach that prioritizes human connections with customers. Louise Hoste, the ACS chair and managing director of Spar UK, echoed this sentiment, stressing the importance of finding the right balance between technology and human interaction.
In conclusion, the ACS conference shed light on several important trends and strategies that retailers should consider as they navigate today’s constantly evolving retail landscape. By prioritizing both value and differentiation in their product offerings, investing in new technologies, and maintaining great retail basics, retailers can future-proof their businesses and continue to win in the market.
